Bombardier Inc.’s rail division (BBDb.TO) has clinched a $1.7-billion order for 660 cars, to be built at the company’s historic train works in Derby, England, in a deal described as “the biggest investment in the railways since the Victorian era.”

The British government’s Department of Transport said on Wednesday that the contract for “state of the art” carriages from Bombardier is part of an effort to boost rail services for passengers across the region of East Anglia and one of the largest orders ever for British-built trains.

“We are making the biggest investment in the railways since the Victorian era,” British Transport Secretary Chris Grayling said.

The franchise for the rail service was awarded to Abellio East Anglia, a division of Dutch transportation company Nederlandse Spoorwegen.

“Abellio’s decision [to use Bombardier as a supplier] will ensure our train-building industry in Derby remains strong,” said Mr. Grayling.

A total of 1,043 cars are to be ordered, with those not made by Bombardier to come from Swiss firm Stadler Rail.

“Bombardier is delighted to be chosen, pending final contract signing, as the preferred supplier for new trains for the East Anglia franchise,” Bombardier Transportation spokesman Marc-André Lefebvre said in an e-mail.

“This announcement is a true endorsement of our work force and the quality of the products they design, engineer and manufacture in the UK. The contract will provide a stable, long-term workload for our staff, as well as supporting many jobs in the wider UK rail supply-chain.”

The future of the historic rail works at Derby – which Montreal-based Bombardier acquired in a transaction 15 years ago – was thrown into doubt in 2011 when the company lost out to German rival Siemens on a contract to build rolling stock for the upgrade to London’s Thameslink network.

The issue grew into a political controversy and the British government promised at the time to place domestic manufacturers on an equal footing with overseas rivals.

The Derby works – in the East Midlands – is Britain’s only remaining train manufacturer. Trains have been made at the site since 1839 and it was a significant player in Britain’s industrial revolution.

Bombardier Transportation’s U.K. commercial director, Des McKeon, said the order is “a great endorsement of Bombardier’s next-generation Aventra train family, which offers maximum flexibility, to serve many different market requirements from metro to inter-city.”

Abellio said it plans to invest a total of $2.2-billion to boost rail services in East Anglia, between London’s Liverpool Street and stations that include Norwich, Cambridge and Stansted airport.